I’ve been listening to a lot of your podcasts recently, and I’m also reading Trend Following. I just listened to Episode 74 and the end of that episode hit on a topic I’ve really been struggling with. I’ve been working a desk job over the past year and I really want to quit. The work is a waste of time. I’m developing a trading system and an e-commerce business, but my job is my only source of income. I’m thinking about making the jump now and figuring things out as I go. I’m unsure about doing this because I need money for bills. Should I quit now or wait for my businesses to produce income? I’m on the fence, I want to quit as soon as I can. I’m 23. Also, I appreciate all the resources you’re providing for free (ie. Podcasts and your websites)
The first thing I wish to say is that I really appreciate that you do read all of your email. What I didn’t expect was such a prompt personal response, thank you for that.
My name is Mark [name], I found your excellent trend following Las Vegas presentation on the [name]. My last blunder was about four years ago when I subscribed to an (expensive) options trading service named [name]. The marketing was very good and the back test looked spot on. So I jumped in with both feet. I quit using that after losing hundreds of thousands of dollars. I had to much faith in this outfit and made big bets, I paid for that error in judgement.
Thanks for your very valuable time, Mark
I’m sure you receive a lot of correspondence with regards to your amazing work so you may not remember me. I joined the trend following course in April and can honestly say the short time it had taken me to study and grasp will be the most impactful set of rules, not only from a trading aspect, but towards life in general. I’m still amazed that trend following doesn’t get the respect it deserves because once you see it you can’t unsee it. Over the last 5 months I’ve had approx 150 trades. What those markets were I couldn’t tell you as the stock, commodity or currency doesn’t concern me as long as in my portfolio I get a signal to buy/sell I have the rules in place to pull the trigger. Out of those 150 trades only twice have been able to place the 5 units on and then wait for a break of the 20 MA. Do I wish the trend moved for longer than it did? Of course but I just take what the market gives me. Do I wish I didn’t have as many losing trades? Not really because I’ve measured volatility and feel in control of the only aspect I can control and that’s my losses. How do I cope with seeing my equity at one point almost reach 60% return to slowly over weeks dwindle back down? If the mindset is to watch a lot of profits disappear more often than not then that’s what I’m prepared to do in order to catch the next trend. I never feel tempted in the slightest as it’s the game we are playing, I put it out of sight out of mind and the best way to make money over the years will be to follow the system, sit on my hands and take what it gives. Thank you for everything and also the great content on the podcast that for me personally is truly life changing not just for me but for generations to come.
In a firm of about 800 advisors, I seem to be the only one still who uses Momentum. The rest sell MPT, just like all the Big Five Bank (Canada) brokers. I used to be one of them. My Branch Compliance Manager, although supportive of my Trading, emphatically says “I don’t want to learn anything new”, just like the rest of the Branch.
Covel: What is your biggest challenge you have faced with your Trading?
Reader: I think it would be trying to time the market and not doing any research. I see guessing on trends and trying to make patterns our of it. Not sure if I should be trading at all, maybe stick to passive index funds.
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I have not done my due diligence in expressing how much your trend trading course, books and, most importantly, podcast have impacted my life. Over the past two years I have obsessively listened to your podcasts, and I continue to work my way through your trend following course with a large dose of humility and a dash of success. Your podcast has impacted me the most because of your relentless focus on trading not as isolated content, but as a contextualized competency. I have been in the field of school transformation for almost 20 years – trying to cure the woes you accurately describe with formal education driving mindless content acquisition instead of authentic, purposeful, experiential learning – and your insight into the importance of trading as a competency is refreshing. You not only teach me the fundamentals of trading, you teach me how to be a trader, to think like a trader, to perform like a trader. That does not mean I simply need to become familiar with market terminology or learn the procedures outlined in the course. It means I need to instill in myself all of the strengths that experts discuss on your podcast – discipline, psychology, dealing with loss, overcoming adversity, getting enough sleep, focusing on the ‘now’…the list is endless. As my fellow die-hard Patriots fan know, being the greatest quarterback of all time does not mean simply having the most accurate throw or the fastest arm. Rather, it comes from embracing a holistic lifestyle focused on every aspect of performance including kinesiology, nutrition, mechanics, mental preparedness, game strategy, self-reflection, and others. You have embraced that same holistic, Brady-esque approach in your teaching which will not only make me a great trader, it will continue to positively impact all areas of my personal and professional life. For that, I am truly grateful.
I just finished reading Trend Following and enjoy your podcast. Turns out you were right. Trend following is the scapegoat during market swings. (But I still believe). This Bloomberg article about CTAs popped up on my apple news feed today:
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Reminiscences of a Stock Operator by Edwin Lefèvre PDF
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